Colo. Code Regs. 39-30-103.5

Current through Register Vol. 47, No. 19, October 10, 2024

Rule 39-30-103.5 - Credit for Enterprise Zone Contributions

Basis and Purpose. The statutory bases for this rule are sections 39-21-112, 39-30-103.5, and 39-30-108, C.R.S. The purpose of the rule is to provide clarification regarding the credit for contributions to certified enterprise zone programs, projects, or organizations.

(1)General Rule. Subject to the limitations prescribed by paragraph (3) of this rule, any taxpayer who makes a qualifying contribution is allowed a credit against Colorado income tax equal to twenty-five percent of the total value of the contribution as certified by the enterprise zone administrator.

(2)Qualifying Contributions. A qualifying contribution is a monetary or in-kind contribution made for the purpose of implementing the economic development plan for the enterprise zone to an enterprise zone administrator or to a project, program, or organization certified by an enterprise zone administrator. As used in this rule and section 39-30-103.5, C.R.S.:

(a) "Monetary contribution" means a contribution of U.S. currency in any form, including cash and payment made by check, electronic funds transfer (EFT), debit card, or credit card.

(b) "In-kind contribution" means a contribution that is not a monetary contribution, including contributions of property, services, stocks, bonds, and other intangible property.

(3)Credit Limitations. Pursuant to section 39-30-103.5(1)(b), the credit allowed and determined pursuant to section 39-30-103.5(1)(a), C.R.S. and paragraph (1) of this rule is reduced by:

(a) the amount by which the credit determined pursuant to section 39-30-103.5(1)(a), C.R.S. and paragraph (1) of this rule exceeds $100,000; and

(b) the amount by which the credit for in-kind contributions, calculated in accordance with section 39-30-103.5(1)(a), C.R.S. and paragraph (1) of this rule, and reduced by the amount calculated pursuant to paragraph (3)(a) of this rule, exceeds fifty percent of the total credit calculated pursuant to section 39-30-103.5(1)(a), C.R.S. and paragraphs (1) and (3)(a) of this rule.

(4)Donor Advised Funds. A donor who contributes to a donor advised fund, as defined in I.R.C. section 4966(d)(2)(A), cannot claim the enterprise zone contribution credit for such contribution, even if the donor instructed the donor advised fund to contribute the funds to a Certified Program.

39-30-103.5

42 CR 08, April 10, 2019, effective 5/15/2019

44 CR 18, September 25, 2021, effective 10/15/2021

45 CR 05, March 10, 2022, effective 3/30/2022